❓ Question#options-and-futures
P
Price Action Pro
Trader · · 151 views
How do I choose the right strike price for option buying?
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When I buy options, how do I decide which strike price to use? ATM, ITM, or OTM?
👍🔥📈8 reactions2 answers
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💡 2 Answers
✅Best Answer
TW
Trading Wolf
Trader · 15 days ago
ATM (At The Money): highest probability of profit percentage wise, highest theta decay. OTM: cheap but low probability, needs a big move. ITM: expensive, behaves more like the underlying, lower time value.
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MH
Market Hawk
Trader · 15 days ago
For directional trades with a clear catalyst (earnings, event), OTM can give high leverage. For regular directional trades, ATM or slightly OTM (1 strike) is the sweet spot between cost and probability.
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